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Bankruptcy Keyed to Bussel, 12th Ed.
In re Trak Auto Corp.
Citation:
367 F.3d 237 (2004)Facts
Trak Auto Corporation operated 196 auto parts stores across multiple states before filing for Chapter 11 bankruptcy in July 2001. As part of its reorganization, Trak Auto closed stores in four states and sought to assign certain leases, including one for space in West Town Center, a shopping center in Chicago. The West Town lease contained explicit use restrictions limiting the premises to “sale at retail of automobile parts and accessories.” Trak Auto solicited bids for the lease assignment, with the highest bid coming from A & E Stores, an apparel retailer planning to open a “Pay Half” discount clothing store. West Town objected to the assignment, arguing that it would violate the lease’s use restrictions and disrupt the shopping center’s tenant mix.
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